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The safe-haven yen just shrugged off the risk-on vibes and resumed its onslaught against its forex rivals. However, the Swissy, another safe-haven currency, wasn’t as lucky and ended up as the worst-performing currency of today’s morning London session.

  • Swiss jobless rate: steady at 3.0% as expected
  • German industrial production m/m: 3.4% vs. 1.8% expected -1.4% previous
  • German trade balance: €23.7B vs. €21.3B expected, €18.9B previous
  • Swiss retail sales y/y: -0.2% expected, -2.5% expected, -2.6% previous
  • French trade balance: €5.69B vs. -€4.7B expected, -€4.96B previous
  • Euro Zone jobless rate: 8.7% as expected, 8.8% previous
  • U.S. NFIB small business index: 104.9 expected, 108.4 expected, 107.5 previous

Major Events/Reports

Most commodities bounce, but precious metals sink

Oil benchmarks extended their gains while most other commodities staged a broad-based recovery during today’s morning London session.

Precious metals didn’t get any love, however. In fact, precious metals encountered some selling pressure during the session, likely because of the risk-on vibes.

Although some market analysts also blamed the slide in precious metals on the relatively stronger Greenback after yesterday’s Fed rhetoric reinforced the idea of multiple rate hikes year.

However, other market analysts pointed out that the Greenback’s rise slowed down and attributed the rise in commodity prices, particularly of some base metals on that.

And for reference the U.S. dollar index was still up by 0.16% to 92.23 for the day but off the day’s high at 92.33.

Base metals were actually mixed but most were in the green.

  • Copper was up by 0.50% to $3.240 per pound
  • Tin was up by 0.08% to $19,997.50 per dry metric ton

Oil benchmarks were in positive territory.

  • U.S. WTI crude oil was up by 0.58% to $62.09 per barrel
  • Brent crude oil was up by 0.41% to $68.06 per barrel

As mentioned earlier, precious metals didn’t do too well.

  • Gold was down by 0.37% to $1,315.50 per troy ounce
  • Silver was down by 0.46% to $17.065 per troy ounce

Risk-taking in Europe

European equity indices were broadly in the green during today’s morning London session, so appetite for risk was clearly prevalent after showing signs of fading away yesterday.

And according to some market analysts, Germany’s strong industrial production report spurred demand for industrial and banking companies, which improved overall risk sentiment.

Meanwhile, other market analysts pointed to the commodities recovery, particularly the rise in oil prices, as the reason for the general risk-taking.

  • The pan-European FTSEurofirst 300 was up by 0.47% to 1,573.02
  • Germany’s DAX was up by 0.22% to 13,394.50
  • The blue-chip Euro Stoxx 50 was up by 0.21% to 3,625.50

U.S. equity futures were also supported by the risk-on vibes in Europe.

  • S&P 500 futures were up by 0.05% to 2,748.00
  • Nasdaq futures were up by 0.08% to 6,693.25

Major Market Mover(s):


The yen steamrolled its forex rivals during the morning London session, extended its gains from the earlier session, even though risk-taking prevailed during the session.

Other than rumors from Kyodo News that the BOJ may upgrade its growth projections in the upcoming BOJ statement, there were no fresh catalysts for the yen’s strength, so we’re likely seeing a continuation of the earlier Asian session’s theme.

USD/JPY was down by 14 pips (-0.12%) to 112.60, EUR/JPY was down by 35 pips (-0.27%) to 134.37, CHF/JPY was down by 45 pips (-0.40%) to 114.58


The yen may have been able to just shrug off the risk-on vibes, but the same can’t be said of the Swissy since the Swissy ended up as the worst-performing currency of the morning London session, despite net positive Swiss economic reports during the session.

USD/CHF was up by 28 pips (+0.28%) to 0.9827, GBP/CHF was up by 16 pips (+0.12%) to 1.3289, NZD/CHF was up by 21 pips (+0.30%) to 0.7062

Watch Out For:

  • 1:15 pm GMT: Housing starts in Canada (240K expected, 252K previous)
  • 3:00 pm GMT: U.S. JOLTS job openings (6.05M expected, 6.00M previous)